NEW INDIA ASSURANCE CO LTD Vs. MANISHA HIRPURKAR

JUDGEMENT

(1.) These appeals [M.A. (C) Nos. 706/2010 and 710/2010] were heard analogously and disposed of by this common order as common question of fact and law are involved and both have arisen out of the one accident. Invoking the appellate jurisdiction of this Court under Section 173 of the Motor Vehicles Act, 1988 (to be referred to as 'the M.V. Act') appellant/the New India Assurance Company Limited has filed these appeals questioning the legality and validity of impugned award dated 26th February, 2010 passed by 8th Additional Motor Accident Claims Tribunal, Durg in Claim Case Nos. 110/2008 and 111/2008, by which, claimants' applications have been partly allowed and the appellant/Insurance Company has been directed to indemnify the amount under impugned award and thereafter, recover the same from the owner of the vehicle.

(2.) The brief facts in nutshell necessary for adjudication of these appeals are as under:

(3.) Mr. Raj Awasthi, learned Counsel appearing for the appellant/Insurance Company would submit that having regard to the undisputed fact that the cheque issued by the respondent/owner of the vehicle towards the premium for insurance of vehicle was dishonoured and thereafter cancellation of policy was intimated to the respondent/owner before the date of accident, the contract of insurance became void and the appellant/insurer could not be compelled to perform its part of promise under the policy. According to Mr. Awasthi, no liability can be fastened on the insurer qua third party as the policy of insurance is rendered void for want of consideration to the appellant/insurer. He would further submit that the finding of the Claims Tribunal that firstly, the appellant/Insurance Company indemnify the amount under award, and men, same will be recovered from the owner of the vehicle is perverse and liable to be set aside.